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Women And Stocks: What’s The Disconnect?

Women and Stock
3 Minute Read

Women and stocks have gone together like oil and water for a long time. Changes are coming.

Key Points
  • Women were prohibited from participating in stock markets
  • Women are paid, on average, .81 cents for every dollar a man earns
  • Traditionally female jobs have been part time, without retirement benefits

Stocks In History

The New York Stock Exchange has long supported those men who acted as traders in all many of items. Railroads, oil, technologies, automobile manufacturers – nothing was off limits to the traders, who went wild speculating on whether the prices would go up or down, and the companies would ultimately succeed. Energy, tea, catalog-sale businesses, stores selling video games and music – everything went into the stock market, making millions for many, wiping out some, and changing the way business was done.

Women And Stocks In History

In addition to earning less than men, women weren’t even allowed to participate in the New York Stock Exchange until 1967. That does not include the Elizabeth Cady Stanton led stock exchange that was created so women could speculate on railroads. This means that there are historical reasons why women lag behind in the purchase and sale of stocks through brokers and traditional markets.

But much of that is changing. The atmosphere of the stereotypical financial advisor and stock trader is crumbling in favor of democratization of Wall Street, particularly with the recent Game Stop situation where non-traditional bets were made. Women were involved in the shorting/selling exuberance, although not to the same degree as men.

Women And Stocks And Money

Beyond the traditional expectation of a male stockbroker and financial advisor, women are also changing the conversation about money. Demanding equal pay for equal work, earning a salary for their home businesses, and generally making strides toward financial freedom are all ways women are gaining financial freedom and control for themselves and therefore, their own investments. As more and more women become entrepreneurs in their own right, they are able to set up a Self–Directed IRA or Solo 401(k) which enables control over what investments are made, and allow for alternative as well as traditional investments.

A Self-Directed IRA LLC (SDIRA) is a type of individual retirement account that allows retirement investors to use their IRA funds to make alternative asset investments.  Self-Directed IRAs are similar to traditional IRAs, but they provide more investment options to IRA holders. By using this retirement structure, you can diversify your investment opportunities and invest outside of stocks, bonds, mutual funds, and other traditional assets. You can still make traditional asset investments, but if you’re more comfortable investing in assets like real estate and precious metals, the Self-Directed IRA LLC allows you to do so. Ultimately, this diversifies the assets inside of your retirement account.

A Solo 401(k) plan is a 401(k) qualified retirement plan that was designed for self-employed individuals and small business owners with no full-time employees, excluding a business partner and spouse. Much like the traditional 401(k), this unique plan encourages individuals to save for retirement in a tax-advantaged environment. When participants contribute funds into the Solo 401(k), taxes on the funds will be deferred until the participant takes a qualified distribution.

The Solo 401(k) is an IRS-approved plan that has the same rules and requirements as a traditional employer-sponsored 401(k). However, the Solo 401(k) allows participants to make annual contributions to the plan as both an employee and employer, which ultimately increases the yearly maximum contribution limit.

Women And Stocks And The Future

As women take the reins of their own lives and finances, they will be best able to direct their financial futures. This means that women, hopefully paid equally for equal work, will therefore have additional money to invest in the stock market – along with the knowledge and expertise as they are welcomed into the hallowed halls of stock exchanges. As women traditionally have invested in real estate and kept cash, the future may prove that their investment prowess is as accurate as any man’s and that the stock market can be an even playing field for all.

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